thanks ill take read, i dont use DOM, but was wondering what power it has. i just do market buy and sell.
5 min bar chart with volume of the SPY and a bar chart of the SP cash index - that's it (I could trade on one screen if it really came down to it). I prefer the SPY over the ES... I like working an entry through .05's ~ .10's, and the ability to add liquidity saves me a small fortune. All my entries are automated and my exits are all discretionary. Regards, Mike
As do I. Occasionally, I'll get a bit cocky, and toss out a Limit Order well in advance, but for 99% of trades, I use a market order. - Spydertrader
DOM patterns repeat over and over again, just have to make sure you are in the right context to make the correct trading decisions. Really hard to explain but staring at all the action on the DOM and also knowing where I am on the chart allows me to understand how to jump in at the right times based on what I see on the DOM. The rhythm and tempo are key, not so much the size on either bid/offer. I guess I just developed an instinct over time to see what I need to see in order to make the right trades? Not really sure how to explain it much further. To Nik, I've always used 5 min charts, since the first day I started trading so I guess i've just grown accustomed to understanding how to trade off them. I certainly look inside each bar as its forming and make decisions as necessary. Most of my trades last btw 30 secs and 10 mins so I certainly wouldnt say I use wide stops, really I dont use stops at all. Occasionally, I will throw one in after I enter just as a failsafe, if the mkt is moving real fast. Otherwise, all my "outs" are discretionary. Kinda like my DOM situation, I watch price enough to know when I see a certain thing, I know its not going to work and therefore I just get out. Fortunately, this seems to coincide with a mkt that doesnt run away from me.
honestly...DOM...many believe it is deceiving with 'fake' orders...or could really be exit 'sells' on the way up...not short sales of ES,YM...watch out as you 'watch the DOM"
okay...how do you address this?...please read...what are best stocks, ETF's and other to watch when trading off of divergences to DIA,YM etc.?...I.E...GS and ES, or NQ and AAPL etc...